BT Invest. Mgmt (BTT), Platinum Asset Mgmt (PTM)

JPMorgan has initiated coverage on
BT Investment Management
with a “neutral" recommendation and price target of $2.25, and
Platinum Asset Management
with an “underweight" rating and price target of $3.93 a share.

The broker says that BT’s price-earnings ratio is in the middle of its peer group and notes that structural issues in the Australian investment management industry are offsetting the positive momentum in its UK business.

However, JPMorgan believes that Platinum looks expensive on multiple of 18.2 times earnings per share estimates for calendar 2012, which is high relative to its peers. The broker thinks there is more downside risk to the stock given the fund’s recent investment underperformance and the continuing outflows, which have the potential to squeeze margins.